Families need a plan in place to ensure they don't have a care funding gap

07 September 2021
 

On the back of the prime minster’s announcement today on health and social care reform, Louise Higham, financial planning director at Tilney comments on why families need a financial plan in place to ensure they don’t have a care funding gap:

“An overhaul of social care is long overdue and so it should be welcomed that the government is finally starting to introduce reform to the sector. However, it would be wrong to think that today’s announcement will solve all of the problems that families up and down the country face when it comes to funding care for their loved ones.

“From the prime minister’s statement in the Commons today, it is not clear what the cap of £86,000 on what people will be asked to pay over their lifetime will actually cover. For example, will accommodation costs be included in the cap? Accommodation costs could represent sizeable amounts if not included.

“People could still be left in a very difficult financial position if care costs have not been planned for and, in an worst case scenario, could mean that the family home may ultimately need to be sold in order to pay for care. Families shouldn’t get drawn into a false sense of security that their care needs will be taken care of through the measures announced by the government today and they should therefore get a financial plan in place early on to ensure there isn’t a funding gap.”  

About Tilney Smith & Williamson

Tilney Smith & Williamson is the UK’s leading integrated wealth management and professional services group, created by the merger of Tilney and Smith & Williamson on 1 September 2020. With £54.8 billion of assets under management (as at 30 June 2021), it ranks as the third largest UK wealth manager measured by revenues and the eighth largest professional services firm ranked by fee income. The Group currently operates through three principal brands: Tilney, Smith & Williamson and online investment service Bestinvest. It has a network of 28 offices across the UK, as well as the Republic of Ireland and the Channel Islands. Through its operating companies, the Group offers an extensive range of financial and professional services to individuals, family trusts, professional intermediaries, charities and businesses. It is uniquely well-placed to support clients with both their personal financial affairs and their business interests. Tilney Smith & Williamson’s personal wealth management services include financial planning, investment management and advice, online execution-only investing and personal tax advice. For businesses, its wide range of services includes assurance and accounting, business tax advice, employee benefits, forensic advice, fund administration, recovery and restructuring and transaction services.